University system pumps millions into coastal Georgia

The University of Georgia’s latest study on the economic impact of schools in the university system indicates Armstrong Atlantic State University is worth more than $208 million to the Savannah community.

Enhanced by student spending, state universities in coastal Georgia continued to exert a positive influence on the area’s economy in 2011, according to a report Tuesday from the University of Georgia’s Terry College of Business.

The report found Armstrong Atlantic State University pumped $208.7 million into the Savannah area economy during the 2011 fiscal year, a 3.7 percent increase from 2010, while Savannah State University added another $138.7 million to the area, an 8.7 percent annual increase.

In Statesboro, Georgia Southern University generated $512.4 million in economic activity, a 5.2 percent increase from the previous year.

The 35 university system institutions contributed $13.2 billion to regional economies in 2011, leading to 131,990 on-campus and off-campus jobs, the study reported.

Jeffrey M. Humphreys, author of the study and director of the University of Georgia’s Selig Center for Economic Growth, said student spending has been the economic driver in communities with university system institutions.

According to the report, Georgia Southern students spent $243.9 million in the 2011 fiscal year.

Georgia Southern President Brooks Keel called the impact of this activity “huge for attracting businesses to the community.” He said the student body of nearly 20,000 has a “tremendous impact in terms of the number of kids spending money here.”

At Armstrong and Savannah State, both student spending and institutional spending increased in 2011.

Humphreys noted that the number of jobs related to university spending have increased 24 percent in the last five years, while statewide employment has declined 7 percent over that period.

“It’s very striking,” he said, “what a stabilizing influence the university system has had on communities that host these schools.”

More than 3,500 full-time and part-time jobs in Savannah were related to spending by Armstrong and Savannah State. Georgia Southern accounted for nearly 6,900 jobs, the report said.

Bill Hubbard, president of the Savannah Area Chamber of Commerce, said providing a skilled workforce is the biggest contribution from these schools.

“But what often gets overlooked,” he said, “is the pure economic impact of dollars spent in the community that otherwise would not be spent.”

Michael Toma, an economics professor at Armstrong and director of the Center for Regional Analysis, said it is also important to look at the long-term effects of the university system, particularly in educating future workers.

The full economic impact of universities, he said, “is more fully measured in terms of its contribution to workforce development, which translates into more highly productive workers with greater earnings capacity in the long run.”

Calls to Savannah State were not returned on Wednesday. But in a press release Tuesday, its president, Cheryl D. Dozier, said the report showed the school “is meeting its responsibility not only as an important member of the regional higher education community, but also as a powerful engine in the local economy.”

ADVISORY: Users are solely responsible for opinions they post here and for
following agreed-upon rules of civility. Posts and
comments do not reflect the views of this site. Posts and comments are
automatically checked for inappropriate language, but readers might find some
comments offensive or inaccurate. If you believe a comment violates our rules,
click the "Flag as offensive" link below the comment.